A Web3 researcher has shared a good setup on Cardano, betting it would mirror the explosive price action seen from XRP in recent times.
Specifically, CryptoGen-Athos made the claims in an August 9 X post, predicting that Cardano looks primed for an impulsive rally to higher prices. This comes after ADA’s fast start to the week, with its 2.62% rally from around $0.798 to its current price of $0.823, following a broader market bullish trend.
Cardano Eyes Outbreak Inspired By XRP
The market analyst highlighted that Cardano is giving off the XRP vibes with its recent setup. As a result, he encourages exposure to the 10th largest cryptocurrency by market cap for the same thrill of XRP’s parabolic run.
For perspective, XRP broke out from a price range in early November, with an explosive price development ensuing. The uptick saw XRP surge from around $0.50 to $2.90 in December 2024, retrace slightly, and then resume another bullish uptick to January’s high of $3.40.
Meanwhile, XRP surpassed the January peak in July when it reached a multi-year high of $3.66. From November’s price of $0.50, this culminates in a 632%, or 7.3x, rally to the July peak price.
For those who were unexposed, the market watcher has identified that a similar price action could happen with ADA. He shared that Cardano is breaking out from a multiple-year structure, with confluence on higher timeframes backing the momentum.
This comes as Cardano breaks above its price top of $0.81, reached during its price development within a multi-year falling wedge from December 2023 to September 2024. ADA reached the resistance area on March 14, 2024, but faced price rejection, dropping back into the triangle.
However, ADA broke out of the symmetrical triangle in late September and in November rallied to a peak of $1.32. Despite this, Cardano has struggled with the $0.81 resistance, failing to break above the level after falling below in March.
Cardano Targets Multi-Year Highs With Breakout
Nonetheless, Cardano seems to be breaking out now, as momentum ticks bullish. The analyst noted that liquidity is thin and sentiments are still low, suggesting we are at the early stage of a massive rally.
He added that the bullish chart backs this narrative, and Cardano would move fast when it resumes this impulsive leg up. His chart suggests a retest of the $3 price mark, close to its current all-time high of $3.16, representing a 264% uptick from the current price.
Meanwhile, this could be just the start for Cardano, according to an earlier analysis from analyst Ali Martinez. He shared that ADA is exhibiting the same price development as it did in 2021, but at a slower pace. If this trend persists, he mentioned that we might be at the early stage of a substantial price rally for ADA.
Moreover, analyst Deezy predicted that ADA would rally to $10 if it rallies by just half of what it did in 2021. Several other outlooks align with this $10 price target for Cardano this cycle.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
